Leeds are now hoping to seal a deal with McDermott after further discussions about him taking charge.

It is understood that McDermott's reservations were about the ownership and direction of the club.

But Leeds hope McDermott will take it and crucially he is a free agent which is in contrast to their other main target Gus Poyet who has a big release clause from Brighton.

Leeds have been in turmoil since a takeover, and manager Neil Warnock left Elland Road last week.

Former QPR chief Mark Hughes is keen on the role too, but fans may not take to a man who played for Manchester United.

Leeds today released a statement confirming they are close to filling the job.

A statement said: "The process of appointing a permanent replacement for Neil Warnock has progressed significantly this week and when all matters are finalised we will be in a position to make a formal announcement.

"Neil Redfearn will remain as caretaker manager until such time when an appointment is made, and he is being kept informed of the situation by the club's board."